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CrowdStreet offers commercial real estate investments for accredited investors.
CrowdStreet; Alyssa Powell/Insider
Bottom line: Crowdstreet is best for active and passive accredited investors who want access to a wide range of commercial real estate investments. It isn’t a good option for those in search of extremely liquid investments, nor does it suit investors who favor mobile apps.
Overall rating
FeatureInsider rating (out of 5)Fees4.50Investment selection5.00Liquidity3.50Ethics3.00Access4.00Customer support3.25Overall score3.96
Is CrowdStreet right for you?
Crowdstreet is an online marketplace offering institutional-level investments (those that are usually available to public entities and larger-scale investors) in commercial real estate. Its services are limited to accredited investors, but it charges investors no fees to register or access real estate listings. (individuals who have a minimum net worth of $1 million or have a $200,000 salary for individuals/$300,000 for couples).
The real estate investing platform also offers the following options for individual investors: diversified funds and vehicles, individual deals, and tailored portfolios. Plus, you may be able to invest with a self-directed IRA (SDIRA).
In addition, it serves real estate sponsors by offering them options to raise capital and list real estate deals on the CrowdStreet marketplace. Investors, however, should be prepared to park their funds between three and five years (though investment terms for some offerings may range up to 10 years). Most of its choices are illiquid, meaning you won’t be able to convert them to cash as easily as you would a stock or ETF.
It doesn’t currently have mobile apps, but you can sign up for web access with a Google or LinkedIn account.
CrowdStreet vs. RealtyMogul
Crowdstreet
RealtyMogul
Min. Investment
$25,000 (up to $250,000 for some offerings)
Min. Investment
$5,000
Fees
0% investors; 1-5% fee for sponsors; 0.25% to 2.5% tailored portfolios
Fees
1% to 1.25%
Investment choices
Single-sponsor funds, CrowdStreet funds, individual deals, tailored portfolios
Investment choices
REITs and single properties
CrowdstreetRealtyMogul
CrowdStreet and RealtyMogul both offer multiple commercial real estate investments, but RealtyMogul is a better choice for non-accredited investors looking for lower account minimums and asset classes like REITs.
And while RealtyMogul offers an auto-invest feature, CrowdStreet’s tailored portfolios account could be a better fit for those with at least $250,000 to invest.
CrowdStreet vs. EquityMultiple
Crowdstreet
EquityMultiple
Min. Investment
$25,000 (up to $250,000 for some offerings)
Min. Investment
$10,000 (can be as high as $20,000)
Fees
0% investors; 1-5% fee for sponsors; 0.25% to 2.5% tailored portfolios
Fees
Varies; typically 0.5%
Investment choices
Single-sponsor funds, CrowdStreet funds, individual deals, tailored portfolios
Investment choices
Institutional commercial real estate, preferred equity, senior debt, 1031 exchanges, opportunity zones
CrowdstreetEquityMultiple
However, EquityMultiple and CrowdStreet both share the accredited-only investor option. The difference between these two platforms is mainly one of fees, account minimums, and investment choices.
You’ll pay less to get started at EquityMultiple (since it account minimums range up to $20,000), but you’ll need at least $25,000 to start investing with CrowdStreet.
Ways to invest with CrowdStreet
Diversified funds and vehicles
CrowdStreet’s diversified funds and vehicles investment option is best for those who want to spread money across multiple properties. The company gives you access to two types of funds: single-sponsor funds and CrowdStreet funds. It says its single-sponsor funds (which are led by one real estate firm) focus on specific asset classes or particular regions.
The investment platform’s CrowdStreet funds, however, rely on a broader set of properties that CrowdStreet manages itself. CrowdStreet says its property types include multifamily, retail, office, industrial, land opportunities, and other vehicles provided by real estate companies.
And when it comes to fees, CrowdStreet generally charges investors $0. It mainly charges the real estate sponsors multiple fees. These can range from 1-5%. But sponsors may also charge investors fees (read more about its sponsor fees here).
Individual deals
Crowdstreet individual deals option is best for those who prefer to directly pick and choose which properties their money goes to. This option not only gives you the power to directly invest in your favorite properties, but it also utilizes an investment team that keeps your deals up to par.
With the platform’s Portfolio Center, you can monitor your investment performance and interact with real estate sponsors. (See a complete list of its individual deals here.)
Tailored portfolios
Not interested in doing the legwork of researching CrowdStreet’s funds or individual deals? The company also has an option for those who prefer managed accounts; CrowdStreet’s tailored portfolios do all the work for you. Just be prepared for the higher minimum account balance — you’ll need at least $250,000 to begin.
CrowdStreet also calls these personalized portfolios Private Managed Accounts. Provided by CrowdStreet Advisors, LLC (a subsidiary of CrowdStreet, Inc.), tailored portfolios utilize customized investment strategies that align with your particular goals. Annual fees for these portfolios can range from 0.25% to 2.50%. You can learn more about CrowdStreet’s customized portfolios here.
Is CrowdStreet trustworthy?
CrowdStreet currently has an F rating with the Better Business Bureau. BBB scores range from A+ to F. This is the lowest rating a company can receive, and the bureau cites Crowdstreet’s failure to respond to complaints as the primary reason it earned the rating.
When analyzing companies, the bureau considers multiple factors. These include licensing and government actions, advertising issues, bankruptcy, and more.
Another thing to keep in mind is that the bureau’s ratings don’t absolutely ensure a company will be reliable or perform well. This is why it’s crucial to do your own research in addition to its findings.
CrowdStreet has closed one complaint in the last 12 months, according to the BBB. Its profile also shows that it has two unanswered complaints.
Crowdstreet — Frequently asked questions (FAQ)
Is Crowdstreet only for accredited investors?
Yes. Crowdstreet only serves accredited investors. Accredited investors are individuals who either have a net worth that exceeds $1 million, or earn $200,000 annually ($300,000 for couples).
Does Crowdstreet pay monthly?
Crowdstreet says its real estate sponsors typically pay distributions on a quarterly basis, though this can vary per offering.
How much should you invest in CrowdStreet?
CrowdStreet has a minimum requirement of $25,000, so this should be the lowest amount you initially invest with through the platform. It’s wise to make sure any additional amounts you invest align with your budget and personal finances.
Related terms
Accredited investor: Someone with the “accredited investor” status has either earned at least $200,000 for the current year and prior two years ($300,000 for couples), or has a net worth of at least $1 million.Institutional investor: Hedge funds, banks, pensions, insurance companies, and other financial entities that place large volume trades classify as institutional investors. SDIRA: Like regular IRAs, you can establish a traditional or Roth SDIRA. The difference is that these accounts allow you to build wealth through alternative assets like real estate, precious metals, and cryptocurrencies.REIT: These are companies that own income-producing real estate assets. Like mutual funds, they pool investor money together to maintain their projects. Some REITs trade on exchanges, but others don’t.